Question

5. Alan DeLucia purchased 1,000 shares of FPC Enterprises at$38.54 per share and paid a $0.35 per share commission.a. What was the cost of the stock?b. What was the total paid?

Answer 1

Step-by-step explanation

We are given the following:

• Alan DeLucia purchased 1,000 FPC enterprises shares.

,

• A sharecosts $38.54.

,

• A commission of $0.35 is paid per share

We are required to determine the cost of the stock and the total amount paid.

The cost of the stock bought can be calculated as:

`\begin{gathered} Each\text{ }share=38.54 \\ 1000\text{ }shares=38.54*1000=38,540\text{ }dollars \end{gathered}`

Hence, the cost of the stock is $38,540.

Next, we need to determine the total amount paid for commission as follows:

`\begin{gathered} Commission\text{ }per\text{ }share=0.35 \\ For\text{ }1000\text{ }shares=0.35*1000=350\text{ }dollars\text{ } \end{gathered}`

Therefore, the total amount paid is:

`\begin{gathered} Total\text{ }amount=Cost\text{ }of\text{ }stock+commission \\ Total\text{ }amount=38,540+350 \\ Total\text{a}mount=38,890\text{ }dollars \end{gathered}`

Hence, the total amount paid is $38,890.